Palantir Technologies: A Year of Exceptional Growth and Market Performance
Denver’s Palantir Technologies Inc. (PLTR) specializes in developing software platforms for intelligence operations, focusing on counterterrorism efforts. With a significant market cap of $97.8 billion, the company operates not only in North America but also in the U.K. and various international markets.
Stock Performance Catapults Beyond the Market
Over the past year, Palantir’s stock has dramatically exceeded the performance of broader markets. On a year-to-date basis, PLTR stock prices have increased by 142.1%, and they have risen a remarkable 182.9% over the last 52 weeks. In contrast, the S&P 500 Index ($SPX) has recorded 19.6% gains in 2024 and 36.9% returns over the past year.
When focusing more narrowly, Palantir surpassed the SPDR S&P Software & Services ETF’s (XSW) 10.4% gains year to date and 40.7% gains over the past year.
Driving Factors Behind the Stock Surge
The significant rise in PLTR stock is largely attributed to the increasing demand for Palantir’s Artificial Intelligence Platform (AIP). This growing interest has attracted numerous clients and greatly contributed to revenue expansion.
On August 5, following the release of robust Q2 earnings, PLTR stock surged 10.4% in one trading session. The company reported a revenue increase of 27.2% year-on-year and 6.9% sequentially, totaling $678.1 million. Furthermore, Palantir successfully closed 27 deals exceeding $10 million and noted a 41% year-over-year growth in its customer base.
Analysts’ Predictions for Future Earnings
For the current fiscal year ending in December 2024, analysts forecast a striking 137.5% year-over-year growth in adjusted EPS, expected to reach $0.19. Notably, Palantir’s earnings history has shown variability; the company has either surpassed or matched Wall Street’s EPS expectations twice within the last four quarters, while it missed estimates on two occasions. In the most recent quarter, its adjusted EPS of $0.03 fell short by 25%.
Currently, PLTR stock holds a consensus “Hold” rating overall. Out of 14 analysts covering the stock, two recommend “Strong Buy,” six advise “Hold,” one suggests a “Moderate Sell,” and five recommend a “Strong Sell.”
Shifts in Analyst Recommendations
This outlook appears more cautious compared to three months ago when the consensus included three “Strong Buy” ratings and one “Moderate Buy.”
On October 17, Mizuho analyst Gregg Moskowitz maintained an “Underperform” rating for PLTR while raising the price target to $30.
Currently, Palantir’s stock trades above its mean price target of $27.14, yet Wall Street’s highest target of $50 indicates a potential upside of 20.3% from current levels.
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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
